Virtu Financial announced an agreement to acquire Investment Technology Group, a US agency broker, in a cash transaction valued at $30.30 per ITG share, putting the deal total at just a whisker shy of $1bn. The transaction is expected to close during the 1st half of 2019.
In a statement, Virtu said the acquisition is a natural next step in its growth by offering its clients a complete suite of agency services, including transparent trading and workflow technology, analytics, and liquidity solutions that all leverage Virtu’s global, scaled technology infrastructure.
Within two years of the completion of the transaction, Virtu expects to realize approximately $123 million of net pre-tax expense savings, in addition to $125 million of capital synergies. These savings do not include any revenue enhancements that Virtu anticipates will result from the transaction.